scholarly journals How Hayekian is Sunstein's behavioral economics?

2021 ◽  
pp. 1-10
Author(s):  
Robert Sugden
Keyword(s):  
Behavioral Economics ◽  
Fuel Economy ◽  
Behavioural Economics ◽  
Carbon Taxes ◽  
Normative Economics

Abstract I comment on Sunstein's paper proposing ‘Hayekian behavioural economics’. In essence, Sunstein is merely renaming a familiar approach to normative economics, initiated in Sunstein and Thaler's seminal 2003 paper. I argue that this approach cannot fairly be described as in the spirit of Hayek's work. Sunstein's approach is based on a ‘constructivist’ conception of rationality that Hayek consistently criticized. Although both Hayek and Sunstein address ‘knowledge problems’, the two problems are fundamentally different. I develop what I claim are truly Hayekian critiques of Sunstein's claim that fuel economy mandates can be more Hayekian than carbon taxes.

scholarly journals Lecture 10: Rhetoric and Behavioral Economics

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Gary McCarron
Keyword(s):  
Behavioral Economics ◽  
Public Interest ◽  
Behavioural Economics ◽  
Economic Interests ◽  
The Public ◽  
Choice Making ◽  
Specific Behaviour ◽  
Points Of View

Although behavioural economists are not rhetoricians, and rhetoricians are not behavioural economists, they are both interested in persuasion, even as they come at it from different points of view. Lecture 10 argues that behavioural economics examines our choice-making practices and considers how a range of influences works in concert with conventional economic interests to shape the procedures by which we come to decisions. These influences use rhetoric to nudge people to adopt particular beliefs, engage in specific behaviour, and endorse ideas believed to be in the public interest. Les économistes comportementaux ne sont pas rhétoriciens, et les rhétoriciens ne sont pas économistes comportementaux, mais ils s’intéressent tous les deux à la persuasion, même si leurs points de vue diffèrent. Le cours 10 soutient que l’économie comportementale examine notre manière de faire des choix et il considère comment un éventail d’influences, de concert avec des intérêts économiques conventionnels, façonne les procédures par lesquelles on prend des décisions. Ces influences utilisent la rhétorique afin d’inciter les gens à adopter des croyances particulières, adopter des comportements spécifiques, et appuyer des idées censées être dans l’intérêt public.  

Bounded Rationality, Behavioral Economics, and the Law

2017 ◽  
Author(s):  
Christine Jolls
Keyword(s):  
Decision Making ◽  
Behavioral Economics ◽  
Bounded Rationality ◽  
Legal System ◽  
Behavioural Economics ◽  
Applied Economics ◽  
Legal Rule ◽  
Legal Analysis ◽  
Economic Analysis Of Law ◽  
System Knowledge

Behavioural economics has become a leading force in applied economics, including in economic analysis of law. At the heart of behavioural economics is the concept of bounded rationality. Bounded rationality suggests that humans face important limitations in knowledge and decision-making capability. Such limitations have clear importance to both the understanding and the improvement of the legal system. Knowledge limitations present a particularly compelling area for legal analysis. Two case studies of debiasing through law in response to knowledge limitations reveal the potential mechanisms by which law may ease such limitations among boundedly rational actors. In such cases of debiasing through law, empirical evidence plays a pivotal role, as this evidence both identifies the existence of knowledge limitations in the first instance and provides a means by which to assess whether a given legal rule allays such limitations.

Richard Thaler and behavioral economics: From the lab experiments to the practice of nudging (Nobel Memorial Prize in Economic Sciences 2017)

2018 ◽  
pp. 5-25 ◽  
Author(s):  
A. V. Belyanin
Keyword(s):  
Behavioral Economics ◽  
Empirical Research ◽  
Financial Market ◽  
Behavioural Economics ◽  
Libertarian Paternalism ◽  
Group Interactions ◽  
Lab Experiments ◽  
Behavioural Research ◽  
Individual Decisions ◽  
Economics Research

The paper considers the contribution of Richard Thaler, Nobel Memorial Prize in Economic Sciences winner - 2017, to contemporary behavioural economics as an independent area of economics research. It covers the interactions of behavioural economics with experimental and empirical research, and the use of behavioural models to explain various phenomena of individual decisions, group interactions, financial market behaviour etc. Specific attention is paid to the practice of behavioural “nudging” and its methodological foundations (libertarian paternalism), as well as the role and place of behavioural research in modern economics in general.

The Two-Degree Solution

Pained ◽  
2020 ◽  
pp. 35-38
Author(s):  
Michael D. Stein ◽  
Sandro Galea
Keyword(s):  
Fuel Economy ◽  
Forest Degradation ◽  
Transportation Systems ◽  
Carbon Taxes ◽  
Power Sector ◽  
Efficient Energy ◽  
Transportation Sector ◽  
Energy Innovation ◽  
Global Emissions ◽  
Current Energy

This chapter highlights possible solutions to avoid global warming and its consequences for health. An energy policy firm, Energy Innovation, created a model on how current energy policies would impact future carbon emissions. Industry has the greatest potential for cutting back on global emissions through policies focused on more efficient energy production and stricter emissions standards. Power sector (electricity) emissions would decline with renewable energy incentives and improving the grid's capacity to accommodate multiple energy sources. Transportation sector emissions would drop with stricter fuel economy standards and more green urban transportation systems. The energy consumption of buildings could decrease with more efficient building codes and appliance standards. Meanwhile, carbon pricing is a cross-sector policy that would create carbon taxes and caps, while land use emissions could be reduced through policies aimed at reducing deforestation and forest degradation.

scholarly journals The Community of Advantage

2020 ◽  
Vol 13 (1) ◽  
Author(s):  
Robert Sugden
Keyword(s):  
Behavioural Economics ◽  
Recent Book ◽  
Major Theme ◽  
James Buchanan ◽  
Normative Economics ◽  
Philosophy And Economics

This is an interview by the Erasmus Journal for Philosophy and Economics (EJPE) with Robert Sugden. The interview covers the intellectual trajectory of Sugden, from his early critique of Amartya Sen’s liberalism, to his interactions with James Buchanan and his contributions to behavioural economics. A major theme in the interview is Sugden’s development of a rival program of normative economics based on modern behavioural economics. The interview also discusses Sugden’s recent book The Community of Advantage which synthesizes many of the themes he worked on.

scholarly journals OPPORTUNITY AND PREFERENCE LEARNING

2015 ◽  
Vol 31 (2) ◽  
pp. 275-295 ◽  
Author(s):  
Christian Schubert
Keyword(s):  
Rational Choice ◽  
Role Model ◽  
Welfare Economics ◽  
Behavioural Economics ◽  
Preference Learning ◽  
Normative Economics ◽  
Alternative Concept ◽  
Normative Standard ◽  
Responsible Person

Abstract:Robert Sugden has suggested a normative standard of freedom as ‘opportunity’ that is supposed to help realign normative economics – with its traditional rational choice orientation – with behavioural economics. While allowing preferences to be incoherent, he wants to maintain the anti-paternalist stance of orthodox welfare economics. His standard, though, presupposes that people respond to uncertainty about their own future preferences by dismissing any kind of self-constraint. We argue that the approach lacks psychological substance: Sugden's normative benchmark – the ‘responsible person’ – can hardly serve as a convincing role model in a contractarian setting. An alternative concept is introduced, and some implications are briefly discussed.

scholarly journals Hayekian behavioral economics

2021 ◽  
pp. 1-19
Author(s):  
Cass R. Sunstein
Keyword(s):  
Behavioral Economics ◽  
Fuel Economy ◽  
John Stuart Mill ◽  
Price System ◽  
Public Institutions ◽  
Limited Attention ◽  
Unrealistic Optimism ◽  
Freedom Of Choice ◽  
Present Bias ◽  
Favorable Conditions

Abstract One of Friedrich Hayek's most important arguments pointed to the epistemic advantages of the price system, regarded as an institution. As Hayek showed, the price system incorporates the information held by numerous, dispersed people. Like John Stuart Mill, Hayek also offered an epistemic argument on behalf of freedom of choice. A contemporary challenge to that epistemic argument comes from behavioral economics, which has uncovered an assortment of reasons why choosers err, and also pointed to possible distortions in the price system. But, even if those findings are accepted, what should public institutions do? How should they proceed? A neo-Hayekian approach would seek to reduce the knowledge problem by asking what individual choosers actually do under epistemically favorable conditions. In practice, that question can be disciplined by asking five subsidiary questions: (1) What do consistent choosers, unaffected by self-evidently irrelevant factors, end up choosing? (2) What do informed choosers choose? (3) What do active choosers choose? (4) When people are free of behavioral biases, including (say) present bias or unrealistic optimism, what do they choose? (5) What do people choose when their viewscreen is broad, and they do not suffer from limited attention? These questions are illustrated with reference to the intense controversy over fuel economy standards.

Microstructure of an extruded rapidly solidified Al-8Fe-2Mo alloy

1986 ◽  
Vol 44 ◽  
pp. 548-549
Author(s):  
W. T. Donlon ◽  
J. E. Allison ◽  
S. Shinozaki
Keyword(s):  
Electron Microscopy ◽  
Automotive Industry ◽  
Fuel Economy ◽  
High Strength ◽  
Al Alloys ◽  
Light Weight ◽  
Thin Sections ◽  
Strength And Durability ◽  
Rapidly Solidified ◽  
Whitney Aircraft

Light weight materials which possess high strength and durability are being utilized by the automotive industry to increase fuel economy. Rapidly solidified (RS) Al alloys are currently being extensively studied for this purpose. In this investigation the microstructure of an extruded Al-8Fe-2Mo alloy, produced by Pratt & Whitney Aircraft, Goverment Products Div. was examined in a JE0L 2000FX AEM. Both electropolished thin sections, and extraction replicas were examined to characterize this material. The consolidation procedure for producing this material included a 9:1 extrusion at 340°C followed by a 16:1 extrusion at 400°C, utilizing RS powders which have also been characterized utilizing electron microscopy.

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